Tag: worth

Tesla’s 13 percent stock slump on Friday was the biggest of the new year, and the seventh-steepest since the company’s public market debut in 2010. The decline followed an announcement by CEO Elon Musk that Tesla is slashing 7 percent of its full-time jobs as it ramps up production of Model 3 sedans. The last time Tesla investors had a day that rough was Sept. 28, when the stock plummeted almost 14 percent after the Securities and Exchange Commission sued Musk for fraud. The stock debuted at $17

Tesla’s 13 percent stock slump on Friday was the biggest of the new year, and the seventh-steepest since the company’s public market debut in 2010. The decline followed an announcement by CEO Elon Musk that Tesla is slashing 7 percent of its full-time jobs as it ramps up production of Model 3 sedans.

The last time Tesla investors had a day that rough was Sept. 28, when the stock plummeted almost 14 percent after the Securities and Exchange Commission sued Musk for fraud.

For the most part, shareholders have been rewarded for gambling on the electric car-maker and its enigmatic CEO. The stock debuted at $17 and is now trading at over $300. If you invested $1 million in the IPO, that stake would now be worth about $17.8 million.

On Friday, gold went negative on the week, its first down week in five. However, the precious metal is up 10 percent since hitting 52-week low in August, and the chart is now flashing a secret buy sign: The “golden cross.” Worth points out that a “wedge” has formed in the chart of gold over the past few years, and that’s got the technician looking for an bounce ahead for the metal. As for how high gold could run, Worth is looking to $1,300 as a “critical juncture” for the metal. According to the

On Friday, gold went negative on the week, its first down week in five. However, the precious metal is up 10 percent since hitting 52-week low in August, and the chart is now flashing a secret buy sign: The “golden cross.”

The term refers to what happens when the 50-day moving average crosses above its 200-day moving average. Investors have typically view this as a bullish signal that points to more upside — and Cornerstone Macro technician Carter Worth believes the gold bulls might just be right.

Worth points out that a “wedge” has formed in the chart of gold over the past few years, and that’s got the technician looking for an bounce ahead for the metal.

“The point is that there is a lot of tension and typically this setup is resolved in a dynamic way,” he said Thursday on CNBC’s “Futures Now,” adding that “our bet is it’s going to be resolved up.”

What’s more, gold is outperforming the overall commodities market, leading Worth to say that the metal is seeing “the prospect of an important breakout” — thanks to its strength.

As for how high gold could run, Worth is looking to $1,300 as a “critical juncture” for the metal. According to the technician, if gold manages to break through $1,300, a level it last hit in June, then a rally up to $1,350 is likely.

U.S. government debt prices rose on Thursday amid worries over China’s economy and Brexit uncertainty,The yield on the benchmark 10-year Treasury note fell to 2.718 percent, while the yield on the 30-year Treasury bond dipped to 3.064 percent. Bond yields move inversely to prices. The news came after comments from the Chinese state planner and Premier Li Keqiang suggested the country would inject more stimulus amid concerns of a slowdown in economic growth. Recent data has shown signs of weaknes

U.S. government debt prices rose on Thursday amid worries over China’s economy and Brexit uncertainty,

The yield on the benchmark 10-year Treasury note fell to 2.718 percent, while the yield on the 30-year Treasury bond dipped to 3.064 percent. Bond yields move inversely to prices.

On Wednesday, China’s central bank made its biggest ever daily net cash injection via reverse repo operations, pumping $82.73 billion into the banking system. The news came after comments from the Chinese state planner and Premier Li Keqiang suggested the country would inject more stimulus amid concerns of a slowdown in economic growth.

Such concerns appeared to weigh on investor sentiment Thursday. Recent data has shown signs of weakness in China’s economy, a sensitive issue as Beijing tries to resolve its trade dispute with the Trump administration over the course of a 90-day tariffs truce. The two countries have targeted each other’s economies with new duties on billions of dollars’ worth of imports.

What’s your net worth? Subtract what you owe from what you own to determine your net worth. If your net worth is in the red, you’ll need to work on saving more and spending less. For student loans, rates run from 5.05 percent for direct loans for undergrads to 6.6 percent for direct unsubsidized loans for graduate and professional students. Ideally, as you continue to earn and save, your net worth will grow.

Even if you don’t fly on private jets or play polo, this simple equation is an important tool that says a lot about your financial health.

Still, most people don’t bother to calculate it. That’s a mistake.

“It’s the first snapshot into an overall look at your finances,” said Michael LaRiviere, a certified financial planner at Essex Financial in Connecticut.

Your net worth is essentially the sum of all of your assets, including cash, retirement accounts, college savings, house, cars, investment properties and valuables such as art and jewelry minus any liabilities, or long-term debt, like a mortgage, student loans, revolving credit card balances and any other personal loans.

Subtract what you owe from what you own to determine your net worth.

“More often than not — especially for those under 40 — the number is going to be negative,” said Daniel Routh, a CFP at Exencial Wealth Advisors in Oklahoma City. “That’s not unusual and not something to be afraid of.”

If your net worth is in the red, you’ll need to work on saving more and spending less. Start with the rates you are paying on borrowed money and begin chipping away at the highest-interest debt first, especially credit cards, followed by student loans.

Credit card rates are currently at a record high of over 17 percent on average, according to Bankrate.

For student loans, rates run from 5.05 percent for direct loans for undergrads to 6.6 percent for direct unsubsidized loans for graduate and professional students.

You may also be able to lower the interest rate on your student loans substantially, even as low as 3 percent or 4 percent, by refinancing. Then, keep on top of regular payments, Routh said.

From there, work on building up your savings, particularly by participating in your company’s retirement savings plan (if offered). You should be contributing at least enough to receive an employer match, if you are eligible for one — even if that means cutting other expenses or dialing back your spending.

If your company does not offer a 401(k) plan or company match, consider contributing to an individual retirement account or a Roth IRA. Contributions to a Roth are not tax-deductible and earnings grow tax-free. And the contributions are yours to withdraw at any time without penalty.

Ideally, as you continue to earn and save, your net worth will grow. To track your progress, revisit your number once a year, LaRiviere said. “Check in to see what goals were we able to accomplish over those 12 months.”

“The top ten countries with the fast growing HNW (high net worth) populations are a motley group,” the report noted. “With a growth measure we would expect to see some less affluent countries with small HNW populations but Poland and Kenya are two surprising cases.” The sources of each of the nations’ wealth growth are disparate too. The Asian giant is forecast to become home to 32 of the world’s 40 high net worth cities over the next five years. Don’t miss: Forget the US and Asia, the top 5 cou

The research points to a common trend among growth forecasts, whereby less developed countries with a lower initial base line — in this case wealth — see greater relative growth.

To be sure, it would be much more difficult for incumbents like the U.S. and China — with their respective millionaire populations of 8.7 million and 1.9 million — to record the same rates, even though China is forecast for impressive growth. However, the report unearths some interesting outliers.

Poland and Kenya, for example, are “surprising cases,” the report noted, because they are not seen in traditional groupings of top emerging nations familiarized by terms such as BRICS (Brazil, Russia, India, China and South Africa) and MINT (Mexico, Indonesia, Nigeria and Turkey).

“The top ten countries with the fast growing HNW (high net worth) populations are a motley group,” the report noted. “With a growth measure we would expect to see some less affluent countries with small HNW populations but Poland and Kenya are two surprising cases.”

The sources of each of the nations’ wealth growth are disparate too. Commodity rich nations like Nigeria and Egypt can likely attribute much of their wealth accumulation to energy exports, Wealth-X noted in a separate report from 2018. Meanwhile, Bangladesh — which has seen the world’s fastest growing ultra wealthy population (those with a net worth of more than $30 million) over the past five years — draws its success from rapid urbanization and increased infrastructure investment.

Vietnam, India, the Philippines and Kenya are among the other countries to feel the impact of greater structural investment. While Ukraine and Poland can attribute their much recent growth to a boon in their tech sectors.

Lastly China, a hotbed for new wealth, continues to benefit from its government’s comprehensive national economic agenda. The Asian giant is forecast to become home to 32 of the world’s 40 high net worth cities over the next five years.

Don’t miss: Forget the US and Asia, the top 5 countries for expats are in Europe and the Middle East

“Capitalism basically is not working for the majority of people. That’s just the reality,” Dalio said at the 2018 Summit conference in Los Angeles in November. In other words, a big giant wealth gap. In fact, Dalio said that the President of the United States should declare the current wealth gap a national emergency. Dalio is not the only billionaire to speak out about the problems with modern capitalism.

With just over $18 billion to his name, capitalism has been good to Ray Dalio: He started his hedge fund, Bridgewater Associates, out of a two-bedroom New York City apartment in 1975 and it now manages $160 billion in assets and is the largest hedge fund in the world, according to Forbes.

Quite literally, Dalio has built a fortune thanks to capitalism. But he’s also keenly aware that it is a deeply flawed system.

“Capitalism basically is not working for the majority of people. That’s just the reality,” Dalio said at the 2018 Summit conference in Los Angeles in November. Monday, Dalio tweeted a video of his Summit talk.

Dalio made the comment about capitalism during a discussion about wealth inequality.

“Today, the top one-tenth of 1 percent of the population’s net worth is equal to the bottom 90 percent combined. In other words, a big giant wealth gap. That was the same — last time that happened was the late ’30s,” Dalio said. (Indeed, research from Emmanuel Saez and Gabriel Zucman of the National Bureau of Economic Research of wealth inequality throughout the 20th century, covered by The Guardian, bears this out.)

Further, Dalio points to a survey by the Federal Reserve showing that 40 percent of adults can’t come up with $400 in the case of an emergency. “It gives you an idea of what the polarity is,” Dalio said. “That’s a real world. That’s an issue.”

And Dalio says the income gap will only get worse.

“We’re in a situation when the economy is at a peak, we still have this very big tension. That’s where we are today,” he said in November. “We’re in a situation where, if you have a downturn, and we will have a downturn, I believe that — I worry that that polarity will become greater.”

In fact, Dalio said that the President of the United States should declare the current wealth gap a national emergency.

“If I was doing it, I think that you have to call that a national emergency,” said Dalio. Then, reasoned Dalio, the President could “[take] responsibility for changing those metrics. I think there’s a lot that can be done in private-public partnerships and so on to be able to change it, but I fear that that probably will not be done by the next time we have a downturn, and I fear for what that conflict is going to be like that.”

Dalio is not the only billionaire to speak out about the problems with modern capitalism.

Berkshire Hathaway CEO Warren Buffett, who is worth $81 billion according to Forbes, has said the problem with the economy is the extreme wealth of people like him.

Artist Rihanna has sued her father Ronald for using “Fenty,” their surname, claiming he aimed to extract “millions of dollars” for his own business. Ronald Fenty and business partner Moses Joktan Perkins run Fenty Entertainment LLC, which Rihanna says is nothing to do with her. It also alleges they negotiated a deal for Rihanna to play 15 shows in Latin America for $15 million, which she had not authorized. Rihanna — full name Robyn Rihanna Fenty — launched makeup line Fenty Beauty in 2017 and i

Artist Rihanna has sued her father Ronald for using “Fenty,” their surname, claiming he aimed to extract “millions of dollars” for his own business.

Ronald Fenty and business partner Moses Joktan Perkins run Fenty Entertainment LLC, which Rihanna says is nothing to do with her. In the lawsuit, she accuses the partners of exploiting her fame and attempting to connect the name with “resort hotel services.” It also alleges they negotiated a deal for Rihanna to play 15 shows in Latin America for $15 million, which she had not authorized.

Rihanna — full name Robyn Rihanna Fenty — launched makeup line Fenty Beauty in 2017 and it reportedly sold $100 million worth of products in its first 40 days. The name is also used for Rihanna’s lingerie brand, Savage x Fenty, which was released last May, and she also has a footwear and apparel line with Puma. Her first collaboration with the sportswear brand helped its sales reach almost $1 billion in its fourth quarter reported in February 2016. She also owns the trademarks Fenty Glow, House of Fenty and Fenty Fragrance, among others, according to the suit.

The markets would see a bullish surge in investor sentiment if the U.S. were to reach a trade deal with the China, BlackRock Chairman and CEO Larry Fink told CNBC on Wednesday. The deal would need to be substantial enough to reduce tension and include both sides calling off tariffs on each others goods, Fink said. “Until we see better certainty on trade and China, we’re not going to see super elevated flows,” said Fink, co-founder of the world’s largest money manager. “If there was a resolution

The markets would see a bullish surge in investor sentiment if the U.S. were to reach a trade deal with the China, BlackRock Chairman and CEO Larry Fink told CNBC on Wednesday.

The deal would need to be substantial enough to reduce tension and include both sides calling off tariffs on each others goods, Fink said. In the latest tariff moves, the U.S. levied 10 percent duties on $200 billion worth of goods from China, prompting Beijing to put tariffs on $60 billion worth of U.S. goods.

“Until we see better certainty on trade and China, we’re not going to see super elevated flows,” said Fink, co-founder of the world’s largest money manager. “If there was a resolution between the U.S. and China, related to trade, we would see a surge in investment sentiment.”

Beijing and Washington are trying to resolve their trade disputes under a tariff cease-fire that ends March 2. President Donald Trump and Chinese President Xi Jinping last month agreed to halt any new levies to give diplomacy a chance.

Fink warned late last year the trade conflict between the U.S. and China could turn into a “full-fledged” trade war if things didn’t change quickly.

Fink appeared on “Squawk Box” shortly after BlackRock reported quarterly earnings that missed expectations and assets under management under $6 trillion. Fourth-quarter revenue slightly beat expectations, according to a revised estimate buy Refinitiv after the earnings report.

In the interview, Fink also said the stock market has made a near-term closing bottom on Christmas Eve. But whether that holds depends on geopolitical risks, he added.

— Editor’s note: This story was updated after Refinitiv revised its projection for BlackRock revenues after the company reported its financial results. According to the revised estimate, BlackRock sales slightly exceeded fourth-quarter expectations.

Top technician says it’s time to fade the financials heading into earnings 5:52 PM ET Fri, 11 Jan 2019 | 05:56Financials were on the rise Monday after Citigroup kicked off earnings season with its latest quarterly results. According to one top technician, there’s something in the charts suggesting the gains may be a head fake as a number of other big bank names also gear up to report this week. “The behavior of this group isn’t very much different from the market at all,” said Carter Worth, head

Financials were on the rise Monday after Citigroup kicked off earnings season with its latest quarterly results.

According to one top technician, there’s something in the charts suggesting the gains may be a head fake as a number of other big bank names also gear up to report this week.

“The behavior of this group isn’t very much different from the market at all,” said Carter Worth, head of technical analysis at Cornerstone Macro. “There are some things that stick out to me that would suggest to fade [financials] here more than anything else.”

The XLF financials ETF is up more than 38 percent in the past three years, outperforming the broader market’s gains of 34 percent.

Worth’s charting revealed that despite those long-term gains, shares of the XLF have recently broken their uptrend around the $27 level and are down nearly 19 percent from their 52-week intraday high of $30.33 last January.

Financials jumped on the back of the 2016 election as investors bet that potential regulation rollbacks and a more pro-business approach from the Trump administration would give a boost to the space. However Worth illustrates that relative to the broader S&P 500, financials have now given back all of the post-election gains.

“We know that we are nowhere near where we were back during the election two years ago,” he said Friday on “Options Action.” “Basically financials have been underperforming on a relative basis and have undone all of the relative performance. That’s a fairly negative circumstance.”

Additionally Worth revealed that while shares of the XLF have bounced off the December lows they’re now approaching key resistance just above the $24 level where they initially broke trend.

“I’m a seller of XLF,” he said.

Shares of the financials ETF were trading higher Monday afternoon, at around $24.70.

“It’s not just a little purchase and so I do think you need to have some assets to justify it.” A general rule of thumb is that “if you have a few hundred thousand dollars [in assets], you should at least consider a prenup,” says Holeman. “But in my experience working with clients, the big cause for actually needing a prenup isn’t necessarily on the dollar amount.” “When one person has way more than the other, that’s where it gets a little dicey,” says Holeman. If you’re both bringing in roughly

“It’s not just a little purchase and so I do think you need to have some assets to justify it.”

A general rule of thumb is that “if you have a few hundred thousand dollars [in assets], you should at least consider a prenup,” says Holeman. “But in my experience working with clients, the big cause for actually needing a prenup isn’t necessarily on the dollar amount.”

Rather, “it’s when there are unequal amounts coming in from the marriage.”

In other words, if one member of the couple has a much higher income or significantly more assets than the other, it’s worth considering a prenup. “When one person has way more than the other, that’s where it gets a little dicey,” says Holeman.

If you’re both bringing in roughly equal amounts to the marriage, a prenup is “less needed, because it’s more of an equal playing field between both spouses,” says Holeman. Though, of course, he adds, that doesn’t mean you shouldn’t discuss getting one.